Annual Report
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2014 Annual Report Contents Company Profile 2 Chairman’s Statement 6 Business Review and Outlook 8 Directors, Supervisors and Senior Management 12 Management Discussion and Analysis 17 Directors’ Report 19 Corporate Governance Report 30 Corporate Information 42 Independent Auditor’s Report 43 Financial Statements — Prepared under International Financial Reporting Standards 50 Five Years Financial Summary 127 Supplements 128 Company Profile Huadian Power International Corporation Limited (the “Company”) and its subsidiaries (together the “Group”) are one of the largest comprehensive energy companies in the People’s Republic of China (the “PRC”), and primarily engage in the construction and operation of power plants, including large-scale efficient coal- or gas-fired generating units and various renewable energy projects, and the development, construction and operation of coal mines. The power plants and companies affiliated with the Group are all strategically located in the vicinity of electricity load centres or coal mining regions. As at the date of this report, the Group had a total of 47 controlled power plants which have commenced operation. The Group’s total controlled installed capacity amounted to 38,093.3MW, of which 34,051MW was attributable to controlled coal- and gas-fired generating units, and 4,042.3MW was attributable to renewable energy generating units such as hydropower, wind power, solar power and biomass energy power generating units. The coal mining enterprises controlled or invested by the Group totaled 16, with coal resource reserves of approximately 2.2 billion tonnes and expected production capacity of approximately 10 million tonnes/year. The Company was incorporated in Jinan, Shandong Province, the PRC on 28 June 1994. On 30 June 1999, the Company issued approximately 1,431 million H shares in its initial public offering, which were listed on The Stock Exchange of Hong Kong Limited (“Hong Kong Stock Exchange”). On 3 February 2005, the Company issued 765 million A shares in the PRC, which were listed on the Shanghai Stock Exchange. Subsequently, on 1 December 2009, 3 July 2012 and 18 July 2014, the Company issued 750 million, 600 million and 1,150 million A shares, respectively, each through a non-public issuance in the PRC, and all such A shares are listed on the Shanghai Stock Exchange. On 30 July 2014, the Company issued approximately 286 million H shares by way of a placing, and such H shares are listed on the Hong Kong Stock Exchange. Currently, the Company has an issued share capital comprising 7,090,056,200 A shares and 1,717,233,600 H shares, accounting for approximately 80.50% and 19.50%, respectively, of the total issued share capital of the Company. For the year ended 31 December 2014, the total number of employees of the Group amounted to 24,399. Details of the Group’s major operational power generating assets and coal mining assets as at the date of this report are as follows: (1) Details Of controlled coal- or gAs-fired generating units are As follows: Equity interest Installed held by the Name of power plant/company capacity Company generating units (MW) 1 Zouxian Plant 2,575 100% 1 x 635MW + 1 x 600MW + 4 x 335MW 2 Shiliquan Plant 800 100% 2 x 330MW + 1 x 140MW 3 Laicheng Plant 1,200 100% 4 x 300MW 4 Huadian Zouxian Power Generation Company Limited 2,000 69% 2 x 1,000MW (“Zouxian Company”) 5 Huadian Laizhou Power Generation Company Limited 2,000 75% 2 x 1,000MW (“Laizhou Company”) 6 Huadian Weifang Power Generation Company Limited 2,000 45% 2 x 670MW + 2 x 330MW (“Weifang Company”) 7 Huadian Qingdao Power Generation Company Limited 1,220 55% 1 x 320MW + 3 x 300MW (“Qingdao Company”) 8 Huadian Zibo Thermal Power Company Limited 950 100% 2 x 330MW + 2 x 145MW (“Zibo Company”) 9 Huadian Zhangqiu Power Generation Company Limited 925 87.5% 1 x 335MW + 1 x 300MW (“Zhangqiu Company”) + 2 x 145MW 10 Huadian Tengzhou Xinyuan Thermal Power Company Limited 930 93.257% 2 x 315MW + 2 x 150MW (“Tengzhou Company”) 11 Hudian Longkou Power Generation Company Limited 880 84.31% 4 x 220MW (“Longkou Company”) (Formerly “Shandong Century Electric Power Development Company Limited”) 12 Huadian Ningxia Lingwu Power Generation Company Limited 3,320 65% 2 x 1,060MW+ 2 x 600MW (“Lingwu Company”) 13 Ningxia Zhongning Power Generation Company Limited 660 50% 2 x 330MW (“Zhongning Company”) 14 Sichuan Guang’an Power Generation Company Limited 2,400 80% 2 x 600MW + 4 x 300MW (“Guang’an Company“) 15 Huadian Xinxiang Power Generation Company Limited 1,320 90% 2 x 660MW (“Xinxiang Company”) 16 Huadian Luohe Power Generation Company Limited 660 75% 2 x 330MW (“Luohe Company”) 17 Huadian Qudong Power Generation Company Limited 660 90% 2 x 330MW (“Qudong Company”) 18 Anhui Huadian Suzhou Power Generation Company Limited 1,260 97% 2 x 630MW (“Suzhou Company”) 19 Anhui Huadian Wuhu Power Generation Company Limited 1,320 65% 2 x 660MW (“Wuhu Company”) 20 Anhui Huadian Lu’an Power Generation Company Limited 1,320 95% 2 x 660MW (“Lu’an Company“) 21 Hangzhou Huadian Banshan Power Generation Company 2,545 64% 3 x 415MW+ 3 x 390MW Limited (“Hangzhou Banshan Company”) + 1 x 130MW 2 HUADIAN POWER INTERNATIONAL CORPORATION LIMITED Company Profile (Continued) Equity interest Installed held by the Name of power plant/company capacity Company generating units (MW) 22 Hangzhou Huadian Xiasha Thermal Power Company Limited 246 56% 1 x 88MW +2 x 79MW (“Xiasha Company”) 23 Hebei Huadian Shijiazhuang Thermal Power Company Limited 1,075 82% 2 x 300MW +2 x 200MW (“Shijiazhuang Thermal Power Company”) + 3 x 25MW 24 Hebei Huadian Shijiazhuang Luhua Thermal Power Company 660 90% 2 x 330MW Limited (“Luhua Company”) 25 Hebei Huarui Energy Group Corporation Limited 1,784.36 100% — (“Huarui Company”) (Note) 26 Shaoguan City Pingshi Electric Power Plant Company Limited 725 100% 2 x 300MW + 1 x 125MW (Plant B) (“Pingshi Power Company”) 27 Tianjin Huadian Fuyuan Thermal Power Company Limited 400 100% 2 x 200MW (“Fuyuan Thermal Power Company”) Note: As at the date of this report, the Company’s interest in installed capacity of Huarui Company amounted to 1,784.36MW. The installed capacity of wind power of Hebei Huadian Yuzhou Wind Power Company Limited, a wholly-owned subsidiary of Huarui Company, amounted to 99MW. (2) Details Of controlled renewable energy generating units are As follows: Equity interest Installed held by the Name of power plant/company capacity Company generating units (MW) 1 Huadian Suzhou Biomass Energy Power Company Limited 25 78% 2 x 12.5MW (“Suzhou Biomass Energy Company”) 2 Sichuan Huadian Luding Hydropower Company Limited 920 100% 4 x 230MW (“Luding Hydropower Company”) 3 Sichuan Huadian Za-gunao Hydroelectric Development 591 64% 3 x 65MW + 3 x 56MW Company Limited (“Za-gunao Hydroelectric Company“) + 3 x 46MW + 3 x 30MW 4 Lixian Xinghe Ganbao Power Company Limited 34 100% 4 x 8.5MW (“Ganbao Company”) 5 Lixian Xinghe Power Company Limited (“Lixian Company”) 33 100% 3 x 11MW 6 Sichuan Liangshan Shuiluohe Hydropower Development 324 57% 3 x 70MW+3 x 38MW Company Limited (“Shuiluohe Company”) 7 Hebei Huadian Complex Pumping-storage Hydropower 57 100% 1 x 16MW+2 x 15MW Company Limited (“Hebei Hydropower Company”) +1 x 11MW 8 Huadian Inner Mongolia Kailu Wind Power Company Limited 399 100% 262 x 1.5MW+2 x 3MW (“Kailu Wind Power Company”) 9 Huadian Kezuozhongqi Wind Power Company Limited 49.5 100% 33 x 1.5MW (“Kezuozhongqi Wind Power Company”) 10 Huadian Power International Ningxia New Energy Power 815 100% 48x 2MW+466 x 1.5MW Company Limited +20MW (“Ningxia New Energy Company”) 11 Hebei Huadian Guyuan Wind Power Company Limited 250.5 100% 167 x 1.5MW (“Guyuan Wind Power Company”) 12 Hebei Huadian Kangbao Wind Power Company Limited 49.5 100% 24 x 2MW+1 x 1.5MW (“Kangbao Wind Power Company”) 13 State Development Zhangjiakou Wind Power Company Limited 100.5 100% 67 x 1.5MW (“Zhangjiakou Wind Power Company”) 14 Huadian Laizhou Wind Power Company Limited 40.5 55% 27 x 1.5MW (“Laizhou Wind Power Company”) 15 Huadian Laizhou Wind Power Generation Company Limited 48 100% 24 x 2MW (“Laizhou Wind Company”) 16 Huadian Laizhou Wind Energy Power Company Limited 49.8 55% 24 x 2MW+1 x 1.8MW (“Laizhou Wind Energy Company”) 17 Huadian Changyi Wind Power Company Limited 49.5 100% 33 x 1.5MW (“Changyi Wind Power Company”) 18 Huadian Zibo Wind Power Company Limited 48 100% 24 x 2MW (“Zibo Wind Power Company”) 19 Huadian Longkou Wind Power Company Limited 49.5 65% 23 x 1.5MW + 6 x 2.5MW (“Longkou Wind Power Company”) 20 Huadian Ningxia Ningdong Shangde Solar Power Company 10 60% 10 x 1MW Limited (“Shangde Solar Company”) 2014 Annual Report 3 Company Profile (Continued) (3) Details Of coal mining enterprisEs controlled or invEsted by the Group are As follows: Percentage of equity interest Resources Interested Name of company held by the group reserve resources reserve Capacity (million tonnes) (million tonnes) (thousand tonnes/year) 1 Shanxi Shuozhou Pinglu Maohua Bailu Coal 100% 395 395 1,200 Company Limited 2 Shanxi Shuozhou Pinglu Maohua Wantongyuan Coal 70% 373 261 2,100 Company Limited 3 Shanxi Shuozhou Pinglu Maohua Dongyi Coal 70% 128 90 900 Company Limited 4 Shunge Mining Industry Company Limited of 100% 28 28 450 Inner Mongolia Alxa League Shunge Mining Group 5 Inner Mongolia Haoyuan Coal Company Limited 85% 77 65 1,200 6 Inner Mongolia Huatong Ruisheng Energy 90% 116 104 3,000 Company Limited 7 Anhui Wenhui New Products Promotion 51% 39 20 600 Company Limited 8 Ningxia Yinxing Coal Company Limited 50% 1,037 519 4,000 9 Sichuan Huayingshan Longtan Coal Power 45% 97 44 1,500 Company Limited (“Longtan Company”) (Note) 10 Otog Front Banner Changcheng Mine 35% 111 39 600 Company Limited 11 Inner Mongolia Fucheng Mining Company Limited 35% 238 83 2,400 12 Otog Front Banner Zhengtai Trading Company Limited 35% 216 76 2,400 13 Otog Front Banner Changcheng No.